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EC SD | The demand for NVDA products has shifted a few times, but they continually find a new hot, hot, hot demand for their products. How? They have a large R&D workforce that works directly with their customers to solve the hardest computational problems formerly only processed on hugely expensive super computers.
So prior to 2007, their chips were exclusively for computer graphics, already a large and fast growing market that continues strong today.
In 2007, they released the CUDA architecture and tooling to enable use of their graphics chips to solve challenges which were not graphical at all. A lot of uses out there, but in terms of explosive sales growth, it was the computation of Crypto algorithms (aka Crypto Mining) that was the game changer. This grew to the point that the crypto industry came under pressure to reduce their global power consumption and associated emissions. The crypto industry changed dramatically to eliminate this need for massive computation a couple of years ago. So NVDA reinvented themselves again, this time to support the AI revolution. Most of their sales growth is driven by AI investments this year, and these new products are very very different than a PC graphics card, although at the core of the product is that same CUDA architecture running on special semi-conducting chips.
My view is that NVDA is a buy and will continue going higher in 2024. That projection is all about AI adoption though, and not at all about computer graphics or crypto anymore... | |
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Semiconductors
